GT faces merger crisis.
The merger between Grant Thornton and HLB Kidsons may be on the brink of collapse if the required number of partners from the smaller firm fails to ratify a deal, write Gavin Hinks and Michelle Perry.
Fears are growing that many Kidsons offices will be cut out of the final deal because they overlap with Grant Thornton branches, in which case it may be impossible to get support from the 75% of Kidsons equity partners needed to seal a deal.
Both Kidsons and Grant Thornton refused to say how many equity partners the firms have but did confirm the proportion required for the deal to go ahead was 75%.
A source close to Kidsons said: ‘Morale is very, very low. Some salaried partners are wondering whether they will be partners at all if the deal goes ahead.’
The firms announced plans to merge in June last year but have yet to settle an agreement.